Newstove, you should probably do just as you initially mentioned, add a 40 gal electric tank (with the Airtap A7 installed on it) inline before your indirect oil fired tank. I should also mention you can get used 40/50 gallon tanks on CL for next to nothing since most people don't want them. I picked up my 50 gal tank for $25 and it was only three years old... just something to consider.
I've been mulling this over for several months now and I still haven't made any concrete decisions yet, but since humidity in our basement will be an issue soon, I need to start thinking harder about this. As I stated earlier, I have a NG fired indirect system and a separate electrical resistance DHW system. After spending thousands to convert from oil over to NG, I've not used the system at all as I've been burning wood/pellets and I don't see it being used in the foreseeable future. Since the NG system is not being used, it obviously makes it much less efficient to use NG to heat the DHW.
My biggest fear with switching over to the HPWH is that it will not meet our normal demands, and based on Mike's gracious input, it sounds like this fear is justified. I know a 12k BTU unit is going to be released soon, but it will be more costly, and I'm still not sure this will cover our needs w/o any issues. Regarding the manufacturers, I suspect the NRT/Nyle unit is superior, but at twice the cost, I don't see how I can justify it.
Since I want high capacity, low operating cost, and some of the dehumidification benefits of the HPWH, I'm strongly considering building a hybrid solar and HPWH system. What I'm thinking is making a solar DHW system similar to the one Gary built (
http://www.builditsolar.com/Experimental/PEXColDHW/Overview.htm), but with slightly larger capacity and make it out of copper rather than PEX. Based on his numbers and my upgrades to his design, I suspect this system would cover at least 95% of our DHW needs. I would feed the large solar storage tank into my existing 50 gallon tank, which I would install the Airtap A7 on. The Airtap would hardly ever have much of a load on it, but it would do the job to maintain tank temp form tank losses, and work as a backup in the event the solar system wasn't keeping up with our demands (although this would probably be fairly unlikely). It looks like I could build the DIY solar system for around $1200 (with the more recent decrease in copper prices and adding in my upgrades), plus another $400 for the Airtap A7 ($600 shipped, minus the 30% tax credit). $1600 is a fairly large amount to spend on a DHW system, but assuming I spend $600 a year now to heat water and still have some issues with running out of hot water, this makes the payback period under 3 years... which isn't that bad IMO for a DHW system with nearly limitless capacity.
Then again, with a solar system covering 95% of our hot water needs, I wonder if it would even be worth adding the HPWH at all and just keep the existing (and reliable) electric DHW tank as it sits. I guess the biggest reason I'm really leaning toward adding the HPWH is because I don't know that I'll have time to build the solar system this summer and I'll need the dehumidification soon... plus I don't think we'll have much of a demand for DHW until fall. Decisions, decisions...